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Walmart Cutting Bottled Water Brand Space

The discount retail chain may favor lower-priced brands with more shelf space.

April 19, 2009, 08:00 pm

NEW YORK -- Fortune 500 company Walmart Stores Inc. may have cut the amount of shelf space it will devote to Coca-Cola Co.’s Dasani and PepsiCo Inc.’s Aquafina products, according to a report by Reuters.

According to Bill Pecoriello of ConsumerEdge Research, the international chain may soon replace 50 percent of the shelf space now dedicated to the two bottled water brands as it pushes lower-priced products, including its own private label water.

He also noted the stores may remove Aquafina and Dasani altogether.

Though spokesmen from Walmart, Pepsi and Coke all declined to comment, Pecoriello estimated Walmart sales make up about 12 percent to 15 percent of Aquafina and Dasani’s total volume.

The expert stated this move could impact volume trends in the second through fourth quarters, though the impact on profit would likely be much smaller than that on volume, according to the report.